EconomyResults
Dr Reddy's profit falls 36% as North American sales of a cancer generic slide
The Hyderabad drugmaker earned ₹925 crore in the September quarter as lower sales of lenalidomide in North America pulled revenue down 1.5%. Its India and emerging markets businesses grew strongly.
Key points
- Net profit fell 36% to ₹925 crore from a year earlier.
- Revenue slipped 1.5% to ₹8,671 crore on lower lenalidomide sales in North America.
- India sales rose 17% to ₹1,851 crore and emerging markets 24%.
Dr Reddy’s Laboratories reported a 36% fall in September-quarter profit on Friday, as sales in North America of lenalidomide, a generic cancer drug, fell.
Net profit attributable to shareholders came to ₹925 crore. Revenue fell 1.5% from a year earlier to ₹8,671 crore, and earnings before interest, tax, depreciation and amortisation dropped 24% to ₹1,783 crore, a margin of 20.6%. Profit before tax was down 33% at ₹1,228 crore.
The company said lower lenalidomide sales in North America weighed on reported growth, and that the rest of its business grew at a double-digit rate once that drug was taken out.
Where it grew
North America brought in ₹2,489 crore, up 13% from the June quarter. Excluding lenalidomide, sales there grew 12.4%, against 2.1% for the US generics market as a whole, according to IQVIA data cited by the company.
Emerging markets were the strongest region, with sales up 24% to ₹2,059 crore, helped by new launches and favourable currency movements. In India, sales rose 17% to ₹1,851 crore. Europe added ₹1,393 crore, up 1%, and the pharmaceutical services and active ingredients unit ₹831 crore, up 12%, though lower volumes of active ingredients held it back.
The results came after the market closed. Dr Reddy’s shares ended Friday at ₹1,229.50 on the National Stock Exchange and will trade on the numbers when the market reopens on Monday.